In New Blow to Dankner, Argentinian Investor Withdraws IDB Investment Offer

Eduardo Elsztain had been expected to invest some NIS 700 million in IDB.

Send in e-mailSend in e-mail

Argentinian investor Eduardo Elsztain has backed out of his planned investment in Nochi Dankner’s financially troubled IDB Holding Corporation, Dankner informed the company’s bondholders Thursday night.

Dankner said he would give bondholders a new proposal for a debt arrangement in the next few days. He said that other Israeli and international investors plan to invest hundreds of millions of shekels in IDB, and the money will be deposited in an escrow account early next week.

But so far, who these investors are remains unknown, as does the seriousness of their intentions.

Elsztain, who invested $25 million in IDB’s parent company, Ganden Holdings, last September, had been expected to invest some NIS 700 million in IDB, together with other investors.

A source close to the company said that Elsztain “has had it with the Israeli economy. But we believe that by Sunday, everything will be clearer and Dankner will present his alternative to the investors.”

Sources close to IDB’s bondholders said they weren’t yet sure whether Elsztain’s withdrawal was for real, or just a ploy to intimidate them.

In nonbinding votes, more than 90% of IDB’s bondholders indicated Thursday, before they learned Elsztain was backing out, that they would rather take over the company than reach a deal with Dankner.

Eduardo Elsztain.Credit: Bloomberg
From left: Nochi Dankner, Rabbi Yoshiyahu Yosef Pinto, and Argentinean real estate magnate Eduardo Elsztain.Credit: Assaf Saar Global

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

Subscribe today and save 40%

SUBSCRIBE
Already signed up? LOG IN

ICYMI

Trump and Netanyahu at the White House in Washington, in 2020.

Three Years Later, Israelis Find Out What Trump Really Thought of Netanyahu

German soldier.

The Rival Jewish Spies Who Almost Changed the Course of WWII

Rio. Not all Jewish men wear black hats.

What Does a Jew Look Like? The Brits Don't Seem to Know

Galon. “I’m coming to accomplish a specific mission: to increase Meretz’s strength and ensure that the party will not tread water around the electoral threshold. If Meretz will be large enough, it will be the basis for a Jewish-Arab partnership.” Daniel Tchetchik

'I Have No Illusions About Ending the Occupation, but the Government Needs the Left'

Soldiers using warfare devices made by the Israeli defense electronics company Elbit Systems.

Russia-Ukraine War Catapults Israeli Arms Industry to Global Stage

Flame and smoke rise during an Israeli air strike, amid Israel-Gaza fighting, in Gaza City August 6, 2022.

Israel Should End Gaza Operation Now, if It Can